Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24028
Authors: 
Böhringer, Christoph
Lange, Andreas
Year of Publication: 
2004
Series/Report no.: 
ZEW Discussion Papers 04-15
Abstract: 
Starting in 2005, the EU will implement a CO2 emissions trading scheme. In this paper we show that the outspoken goals of economic efficiency and free allocation of allowances are incompatible with harmonized allocation rules. In general, the assignment of allowances is endogenous and differs widely across countries, thereby substantiating concerns for implicit state aid and competitive distortions. We discuss potential adjustments to the Directive in order to allow for harmonization, i.e. for identical assignment factors to similar firms located in different EU countries.
Subjects: 
emissions trading
allowance allocation
national allocation plan
competitive distortions
JEL: 
Q58
Q50
H23
H21
D58
Document Type: 
Working Paper

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